Weekly Wrap

Fitzroys Weekly Wrap - 6th December 2019

Posted on 06th December 2019

000 Retail 05

1123 High Street, Armadale
A private investor bought the refurbished 170sqm single-storey building for $1.945 million at a 3.29% net yield, with a 3+3-year lease to established tenant Eternal Bridal.

602-604 High Street, Kew
The vacant 180sqm 2-level freehold has an 11.5m frontage and sold for $1.135 million.

229-237 Carlisle Street, Balaclava
The 2-level, 515sqm retail building sold for $7.5 million at a 3.29% yield. It is leased to 3 tenants, including Grill’d and Upstate Yoga, and is on a 368sqm corner site.

81 Mentone Parade, Mentone
A China-based investor bought the 2,854sqm Coles supermarket sold for $15.3 million at a 3.4% yield. Coles has a 10+10-year lease.

59-63 Florence Street & 133-137 Mentone Parade, Mentone
Six retail shops and a level 1 office on a 534sqm corner site sold together for $5.015 million. The 537sqm building returns $190,090pa plus outgoings and GST.

181-181a Glenferrie Road, Malvern
Offered for the first time in 59 years, the 202sqm 2-storey building sold for $2.31 million at a 3.73% yield. Save the Children has a 3-year lease with options and Multiply Wealth Management a 3-year term.

251 Barkly Street, Footscray
An owner occupier paid $1.175 million for the 220sqm, 2-level building.

71 Brighton Road, Elsternwick
The shop and dwelling on a corner site of 67sqm sold for $1 million. The ground floor is leased to Figo and the 1-bedroom apartment above is vacant.

150 Auburn Road, Hawthorn
The 2-storey 135sqm shop and dwelling sold for $995,000 at a 3.15% yield, with a new 3+3-year lease.

527 Burke Road, Camberwell
A local owner planning to expand their current business bought the vacant 130sqm 2-level shop on a 216sqm site for more than $970,000.

96 Bay Street, Port Melbourne
The 88sqm ground-level shop within the Bank Apartment complex sold for $961,000.

1130 High Street, Armadale
Bonhams Auctioneers leased the 238sqm building for a new auction room and gallery, at a $110,000pa plus outgoings.

688 Glenferrie Road, Hawthorn
The 93sqm ground floor shop was leased for $85,000pa plus GST.

000 Offices 05

115 Green Street, Richmond
The vacant 360sqm office building sold for $2.825 million.

Level 3, 580 Collins Street, Melbourne
Fastrack Technology leased the 96sqm office for 5 years at $550/sqm gross.

Level 8, 80 Dorcas Street, Southbank
Aquasure, operator of Victoria’s desalination plant, signed a 5-year lease for the 230sqm space at $440/sqm net. The building is owned by Deague Property Group.

000Industrial 05

358-364 Johnston Street, Abbotsford
Zoned Commercial 1, the 756sqm warehouse site sold for $4.805 million with short-term income.

161 Perry Street, Fairfield
A national fashion retailer sold the corner warehouse for $3.6 million in a sale and leaseback deal, with a 5+3-year term returning $205,810pa net.

1661 Centre Road, Springvale
A coin-operated amusement game supplier bought the vacant 2,704sqm office and warehouse, on a 4,010sqm corner site, for $4.5 million to expand their business.

686A South Road, Moorabbin
A lingerie wholesaler paid $1.175 million for the older-style warehouse, which had been held within the same family for 56 years.

31 Hall Street, Hawthorn East
Maternity fashion retailer Bae The Label leased the refurbished 450sqm office and warehouse for 5 years at $125,000pa.

63 Garden Road, Clayton
Go Workplace Training signed a 3+3-year lease for 345sqm at $217/sqm net.

16/810-818 Princes Highway, Springvale
D&A Co Pty Ltd leased the 430sqm warehouse for 3 years at $109/sqm.

000 Development 05

196-200 Bulleen Road, Bulleen
A developer bought the 641sqm corner site, zoned Commercial 1, for $1.5 million with short-term income.

000 Specialised 05

1233 Point Nepean Road, Rosebud
Medical consulting rooms leased long-term to Peninsula Foot Clinic sold for $1.775 million at a 4.7% yield.

000 Talking Points 05

Historic Auction Serves Up Huge Result
The historic auction of a Tunstall Square shopping centre retail asset has netted $2.075 million for the vendors of more than 60 years.

Entrusted with the campaign, Fitzroys’ Chris Kombi and Jordan Ceppi sold 13 Tunstall Square under the hammer at a tight 4.11% yield.

Kombi said the auction competition between five parties, with more than 70 bids, pushed the sale price well past the reserve and to a remarkable building rate of $16,000/sqm.

The 130sqm single-storey bricking building is on a 213sqm site that provides future value-add potential, and has a frontage to Tunstall Square of 6m with excellent rear access via ROW.

It is leased to long-standing and renowned tenant Mauro Bros Butchers, which has traded from the property since 1969 and currently has a 5-year lease.

“The strong enquiry and massive result reflected the historical significance of the vendors’ decision to sell in a market that has seen pent-up demand for a high-quality retail properties in well-performing locations across Melbourne,” Kombi said.

Pace Sells Collingwood Office Tower Development
Pace Development Group has sold its 51 Langridge Street office tower in the booming Collingwood commercial market for $31.6 million to a private investor.

Currently under construction, the 10-level, 3,000sqm building will also have a rooftop terrace, and is just over half-leased to tenants that include Inspire Group, Melburnian Medical, Campaign Agent and café Ground Crew.

Close by, Grocon is building the 13-level, $120 million Northumberland office tower that will be home to skincare group Aesop and co-working space operator The Commons, and works have begun at 71 Gipps Street on a 9,000sqm office building that has attracted a pre-commitment from co-working brand Spaces.

US company Hines is planning a $200 million prefabricated timber office complex at 36-52 Wellington Street.

Grocon In Due Diligence For Major North Melbourne Site
With backing from Singapore’s sovereign wealth fund GIC, developer Grocon has entered into due diligence to acquire a 1.5ha North Melbourne site that is one of first major privately-owned properties offered for sale in the Arden urban renewal precinct.

Currently home to the Nick Theodossi Prestige Cars dealership, the property could change hands for around $135 million according to the Financial Review. Development potential for the site includes a mixed-use commercial, student accommodation, retail and residential project worth $1 billion. It is located close to the new Melbourne Metro Tunnel station being built for the Arden precinct.

Centuria Clinches Mulgrave Office
Centuria has bought a fully-leased A-grade office complex in Mulgrave for $27.8 million from Brisbane-based Stronghold Investment Services

Built in 2006, the 5,851sqm complex has two buildings on separate titles and tenants include Tyco Johnson Controls, PZ Cussons, Service Stream and Carer Grange.

Singaporean property group Ascendas REIT recently paid $110.9 million for a new 8-level, 17,500sqm building in Mulgrave that will be the new national headquarters of Nissan.

Chadstone Up for $685m Expansion
Australia’s biggest shopping centre, Chadstone, is set for an $685 million expansion that will include more levels for two car parks, a 9-level office building, an enhanced fresh food precinct and growth of its dining and leisure precinct.

Vicinity Centres will need approval of the local council and of Chadstone’s half-owner, John Gandel.

Chadstone just opened its new 5-star, $130 million MGallery hotel, run by Sofitel.


Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2019 Fitzroys.